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    Reference: 20200758
    Release date: 9 December 2020

    Promoter – Financial Intermediary

    SOFIA MUNICIPALITY

    Location

    Description

    Multi-year programme of investments supporting the construction and rehabilitation of municipal roads, tramways, cycling and walking, and other urban infrastructure in Sofia Municipality.

    Additionality and Impact

    The operation supports transport investments consistent with the General Development Plan for Sofia (updated 2017) and the Sustainable Urban Mobility Plan (SUMP) for Sofia (2019). The proposed investments in the programme are focused on the construction and rehabilitation of sections of the primary road/street network, sections of the tramway, and walking and cycling infrastructure. Other potential investments include public transport and EV infrastructure. These investments will collectively develop mobility in Sofia in-line with the long-term development objectives for an integrated, sustainable and environmentally friendly transport system.


    It is expected that the project will primarily address efficiency (congestion) and green (environmental externalities) market failures. The nature of the schemes means the benefits can only be realised with public investment. At the city-level, transport user benefits are expected from the implementation of the programme components including travel time savings, reduced greenhouse gas emissions (including carbon), improved air quality and fewer road accidents. The public promoter is known to the Bank. The investment programme is aligned to EIB Climate Bank Roadmap and this will be further confirmed for all sub-projects allocated under the operation.


    The EIB's contribution is very important in view of the promoter's limited access to long-term funding to support the sustainable implementation of key urban mobility infrastructure projects. The affordable borrowing rates, longer maturities and grace periods would contribute to the alleviation of the city's budget constraints and ultimately improve the living conditions of citizens benefiting from the project.

    Objectives

    The operation includes the co-financing of urban transport investments in Sofia, Bulgaria, covering a six-year period: 2020-2025. The proposed investments reference the General Development Plan for Sofia and some schemes may be included in an Operational Programme in Bulgaria and co-funded with EU grants. The type of investments proposed at this stage include the construction and rehabilitation of urban/municipal roads and structures, tramway infrastructure, and walking and cycling measures.

    Sector(s)

    Proposed EIB finance (Approximate amount)

    EUR 60 million

    Total cost (Approximate amount)

    EUR 183 million

    Environmental aspects

    The operation is multi-scheme and multi-year classified under a Framework Loan. Some of the schemes, in particular urban roads and tramway infrastructure, may fall under the EIA Directive (2014/52/EU amending the EIA Directive 2011/92/EU). Compliance with the EIA Directive in addition to the SEA Directive (2001/42/EC) and Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively) is to be assessed during appraisal.

    Procurement

    The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/24/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

    Status

    Signed - 14/09/2021

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Bulgaria Transport